United, American raising fares
Struggling to boost sagging revenues and profits, American and United airlines said they will increase their fares next month.
United said yesterday that it would raise fares between $10 and $30 for all classes of flights in the continental United States effective Dec. 9. The carrier said flights with longer mileage would get the higher increases. American put forth a more complex fare structure that charges more for connecting flights beginning Dec. 5.
Delta Air Lines, Northwest Airlines, and Trans World Airlines said they would match United's increase, although Delta said its Northeast shuttle service would not be included. Continental Airlines said it was studying both the United and American plans.
Maryland thrift seeks extension
The Washington area's largest thrift institution has said that, though its fiscal earnings grew significantly, it will not meet stricter new requirements for cash reserves next month. Officials of Chevy Chase Federal Savings Bank in Montgomery County said Tuesday that they would ask federal regulators for more time to build up the cash reserve set aside to protect against losses.
Chevy Chase, with $5.1 billion in assets in 73 offices in Washington, Maryland and Virginia, earned a profit of $21 million in the fiscal year ended Sept. 30, compared with a loss of $10.3 million for the previous fiscal year. The privately held thrift is not required to release its profit figures.
Westinghouse offer rejected
A Philippines government panel has rejected a Westinghouse Electric Corp. offer to settle a bribery suit over a mothballed nuclear power plant it built, a member of the Philippines Cabinet said yesterday. The 620-megawatt plant was built near a volcano 50 miles west of Manila in Bataan Province at a cost of $2.3 billion. Opponents contended the plant was overpriced and unsafe. A commission found numerous defects and recommended repairs.
Corazon Aquino, who was president of the Philippines from 1986 until this year, stopped the plant from going on line because of alleged safety defects. Her government sued Westinghouse for allegedly bribing her predecessor, the late Ferdinand Marcos, to win the contract to build the plant. Westinghouse has said it did not bribe Mr. Marcos.